February 6, 2002
'16'
INDO-RUSSIAN PROTOCOL ON TRADE AND ECONOMIC COOPERATION SIGNED
INCREASED TRADE IN AGRO PRODUCTS TO RAISE BILATERAL TRADE PROPOSED
India and the Russian Federation have agreed to take necessary measures to ensure growth and continued diversification of bilateral trade. Increased trade in agricultural commodities, in addition to tea and tobacco, is expected to contribute to raising substantially the bilateral trade turnover and to the diversification of the Indo-Russian trade basket. This is indicated in the Protocol of the 8th Session of the Indo-Russian Working Group on Trade and Economic Cooperation held under the inter-governmental commission on trade, economic, scientific & technological and cultural cooperation. The Protocol of the two-day session was signed here today by Shri Dipak Chatterjee, Commerce Secretary, on behalf of the Government of India and by Mr. Mikhail Egonovich Dmitriev, First Deputy Minister of Economic Development and Trade, on behalf of the Russian Federation. Steps will be taken to encourage more active interaction between Indian and Russian commercial organisations engaged in the trade of agricultural products and on this context, the Russian side has responded positively to India’s request to assist in identifying reliable commercial organisations in Russia dealing in import of wheat, rice and other relevant products.
Both sides have agreed to initiate remedial action to arrest the declining trend in bilateral trade, especially in the context of the decline in exports of some important items like tea, tobacco, and rice (from India) and fertilisers, iron & steel and metaliferrous ores and metal scrap (from Russia). The Working Group took note of the deliberations between the Tea Board and the Russian Association of Tea and Coffee procedures (Roschaicofe) and hoped that the decisions taken would further help in promoting India’s tea export to Russia. The Russian side also agreed to look into India’s request to nominate an Apex Russian Organisation with whom the Indian Tobacco Board could interact for increasing exports of tobacco to Russia. The Protocol states that all efforts should be made both at the governmental level and to increased interaction among business circles to provide gradual transition to trade between India and Russia on the basis of normal commercial terms and forms, especially as the Rupee debt repayment would be completed in the near future. In this context, the progress made in developing cooperation between Indian and Russian banking and financial institutions was also noted.
With a view to operationalising the Protocol for Cooperation in the field of processing and trade of rough diamonds and precious metals which was signed during the visit of President Putin in October 2000, both sides have agreed to hold the First Meeting of the Joint Working Group for Cooperation in the field of rough diamonds in February/March this year.
On India’s request to expedite settlement of all pending claims of Indian exporters and organisations Russia’s request for early settlement of short payments under states credit, both sides took note of the progress made on these issues and welcomed the decision of the sub-group on banking and financial matters to consider the setting-off of exporters’ claims against repayment of outstanding short payments from the Ministry of Defence of India.
On Russia’s concern regarding import of a range of Russian goods, it was agreed to continue the mechanism of informal consultations. The Indian side also informed the Russian side that a revised notification had been issued which should meet Russia’s concerns relating to the issue of declaration as a non-market economy country. The revised notification applies uniformly to all countries and is of generic nature wherein no country has been specifically named for being classified as a "non-market economy" country. The next session of the Working Group will be held in Moscow in 2003.